A recent decision by the US Court of Appeals for the DC Circuit has sent the approval of Commonwealth LNG’s proposed 9.5 million tonnes per year (tpy) plant in Cameron Parish, Louisiana, back to the Federal Energy Regulatory Commission (FERC) for reassessment. The court directed FERC to reevaluate its approval of the project to include climate impacts, specifically the impact of greenhouse gas and other emissions from the plant.
Commonwealth LNG first received FERC approval in November 2022, but it awaits authorization from the Department of Energy (DOE) to export liquefied natural gas (LNG). The DOE has not yet authorized the project due to a White House-imposed pause on new export licenses pending a DOE review of the climate and economic impacts of surging LNG exports. However, the court’s decision does not mean that FERC’s original approval has been nullified. Instead, it has instructed FERC to re-evaluate its public interest determination, which includes the environmental significance of greenhouse gas emissions and the cumulative effects of nitrogen dioxide emissions from the project.
The court’s orders highlight several key points:
1. **Emissions Assessment**: FERC failed to adequately address the environmental impacts of greenhouse gas emissions from the project.
2. **Cumulative Effects**: The cumulative effects of nitrogen dioxide emissions from the project were not adequately assessed.
3. **Public Interest Determination**: FERC must re-evaluate its public interest determination to ensure compliance with environmental regulations.
Given the comprehensive nature of the reassessment, it is likely that the timeline for the project’s startup may be pushed back. Commonwealth LNG had expected to begin LNG shipments in 2027. However, with the need for FERC and DOE reapproval, the earliest the project could move forward seems to be late 2025.
Environmental groups, such as the Sierra Club, have welcomed the court’s decision, emphasizing the potential environmental harm caused by the project. The Sierra Club’s senior attorney, Nathan Matthews, views the court’s order as a victory for local communities.
Commonwealth LNG remains optimistic, stating that it will continue to provide all relevant data during the reassessment process and that a final investment decision is still targeted for the first half of 2025, which would allow LNG production in 2028. The company’s spokesman, Lyle Hanna, highlighted that the court did not scrap FERC’s approval but rather instructed FERC to revisit its assessment, making it “reasonably likely” that F